Sales taxes on Internet purchases grew one step closer to becoming a reality Monday evening when the Marketplace Fairness Act easily cleared a Senate procedural hurdle by a 74-20 margin.

Final passage is expected later this week. The legislation would allow states that simplify their sales tax systems to collect taxes on purchases made by their residents from online businesses based in other states. Under current law, retailers have to collect sales taxes only for states where they have a physical presence.

Bricks-and-mortar retailers say legislation is needed because tax-free Internet sales give online retailers an unfair advantage. State and local governments, meanwhile, are hungry for the estimated $22 billion in additional tax revenue they would get if online sales were taxed.

That powerful combination of interests is helping the Marketplace Fairness Act sail through the Senate, but the bill will have a harder time in the House. Here are four reasons why:

1. It would feel like a tax increase to consumers

Technically, the bill doesn't create a new tax; it just gives states a way to collect money that's already owed. Sales taxes already are supposed to be paid on Internet purchases, unless the buyer lives in a state that doesn't have a sales tax.

But since states currently can't force an out-of-state business to collect taxes for them, it's up to the buyer to send a check to his or her state for the tax owed on their purchase. Few consumers do this, however, and states have no practical way to enforce this obligation.

So, with a few exceptions, the Internet feels like tax-free shopping to consumers. They're not going to be happy when sales taxes are added to their orders when they check out. It would feel like a tax increase.

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